Gold and Oil Markets Report – 29 Apr 2013

Last Friday, the Bank of Japan held its central meeting and reiterated its support to boost money supply. However, no finite commitment and directive for next stimulus were indicated, hence bludgeoned the USD/JPY market amid rising yen value. The U.S. Commerce Department also reported growth in first quarter grew 2.5 percent annual rate but still under forecast. Dow Jones markets and commodities across the board landed on lower prices amid selling sentiments.

Crude Oil

WTI Crude prices were making technical recovery while following the Gold trend in last week’s ascension. This week, we foresee the market will be topped at 95.00 resistances and moving down is more likely to occur for profit-taking. The Crude trend may trade weaker till 90.00 benchmarks if Gold prices lead the softer trend. Abandon your short-view if the trend pierces above 95.00 resistances.

Gold

Gold prices reached intraweek highs at 1485.00 regions and slumped on Friday to 1448.00 areas. Technically, we reckon the upward correction has ended and may be heading down in coming week. Moving forward, we expect the prices will re-test 1400.00 benchmarks for while waiting for U.S. monetary policy in coming FOMC statement. However, the unlikely breaking above 1485.00 resistances might surge higher to 1510.00 targets.

Silver

Silver prices hit 24.837 highs last week following technical recovery in general commodities. The market closed at 23.961 with reversal sign downwards for coming week. Technically, we expect the resistances to emerge at 25.300 regions if the bulls climb further but downside sinking to 22.5000 levels will be possible upon weakening demands. This week, pay attention to mid-week fundamentals at bid rate meeting from European Central Bank on Thursday that may move metal prices.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives ended closed at slightly optimism while tracking all other recovery in oil commodities. The market has stood well at 2250 supports as we expected and will continue to defend this buying interest if no negative news emerges further. The July contract closed at 2308 on Friday with buying sentiment supported by strong open interest. This week, we expect the market will sit on 2250 supports and continue to rise at 2400 – 2420 regions as our targets.

This post is contributed by OPF Guest Blogger, DAR Wong.

Wong is the founder and Principal Consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA).

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